Location of Records and Chart of Accounts
Key Insights for Business Operations in Malta
For companies operating in or considering Malta as a business location, understanding the flexibility offered by local accounting regulations can be advantageous. Two important aspects worth noting are:
A. Remote Accounting Records Management
Maltese law provides practical flexibility regarding the location of your company's accounting systems:
- Companies registered in Malta are permitted to maintain their accounting records outside the country, provided the location is within the European Union
- While the bookkeeping system itself may be operated remotely, all original supporting documentation must remain easily accessible within Malta
- These supporting documents must be available for inspection by Maltese tax authorities upon request
- This arrangement accommodates multinational operations with centralised accounting functions while maintaining local compliance
B. Freedom in Chart of Accounts Design
Unlike some jurisdictions that mandate standardised accounting structures, Malta offers companies significant autonomy:
- No mandatory or uniform chart of accounts is prescribed by Maltese legislation
- Companies are free to implement their own preferred chart of accounts system
- The only requirement is that the chosen structure must:
- Enable accurate and transparent recording of all financial transactions
- Support the preparation of compliant financial statements according to either GAPSME (General Accounting Principles for Small and Medium-sized Entities) or IFRS (International Financial Reporting Standards), as applicable to the entity
This flexibility allows businesses to maintain accounting continuity when expanding to Malta and design systems that best reflect their operational needs while meeting regulatory standards. If you're considering a move or need tailored advice, our team is ready to guide you every step of the way, helping you fully capitalise on these benefits and ensure a smooth, seamless transition.
